Natural-Gas Prices Rock
U.S.'s Chemical Industry

Production Moves Overseas as Companies
Lay Off Workers and Shut Down Factories

By

Thaddeus Herrick Staff Reporter of THE WALL STREET JOURNAL

Updated June 18, 2003 2:03 a.m. ET

High natural-gas prices in the U.S. are causing turmoil among the nation's chemical manufacturers, stripping the industry of a long-held global advantage and speeding the move of chemicals, plastics and fertilizer production overseas.

U.S. chemical companies are closing plants, laying off workers and looking to expand their own production abroad. The higher cost of natural gas in the U.S. is hitting these manufacturers at the same time the weak economy damps demand for commodity chemicals. Meanwhile, foreign producers are...